Notwithstanding demonetisation, Indian consumers are the most optimistic in the Asia Pacific region and their outlook on economy and stock market showed highest levels of confidence, says a report.

Consumers in India remain extremely optimistic in their outlook for the next six months, said Mastercard Index of Consumer Confidence (H2 2016) released on Monday.

Despite recording a slight dip of 2.4 points in the overall consumer confidence to 95.3 points, India topped the Asia Pacific region as the most optimistic market.

Consumers in India are 'extremely optimistic' about all five components measured in the index, with their outlook on the economy (96.3) and stock market (96.2) showing the highest levels of confidence.

In addition to India, countries like Myanmar (92.8), Vietnam (92.3) and Philippines (91.6) also remained extremely optimistic in their outlook.

Across Asia Pacific, while Bangladesh (82.8, gain of 11.2), Hong Kong (42.2, gain of 10.1) and Thailand (68.3, gain of 10.1) saw more than 10 point improvements while Taiwan (34.2) and Malaysia (31.2) saw more than 10 point decreases.

"It is very encouraging that India's confidence in the economic outlook remains optimistic amid various economic developments in the country," said Porush Singh, Country Corporate Officer, India and Division President, South Asia, Mastercard.

"This result is particularly interesting in light of the recent demonetisation drive that has brought significant change to people's lives as they navigate from a cash intensive economy to a less-cash economy," he further added.

Recent initiatives such as 'Make in India' and 'Digital India' are driving investments across sectors and propelling confidence in the business landscape, the report said.

The latest Mastercard Index of Consumer Confidence is based on a survey conducted across 17 markets in Asia Pacific, between November and December 2016.